U.S. Securities and Exchange Commission
Washington, D. C.  20549
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
       SECURITIES EXCHANGE ACT OF 1934
       For the quarterly period ended   March 31, 2004

[   ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
       EXCHANGE ACT
       For the transition period from             to

Commission file number  0-2054

 TSI, Inc.
 (Exact name of small business issuer as specified in its charter)

            Montana                    81-0267738
(State or other jurisdiction of   (IRS Employer Identification No.)
 incorporation or organization)

128 Second Street South, Great Falls, Montana   59405
(Address of principal executive offices)

(406) 727-2600
(Issuer's telephone number)

 Not Applicable
(Former name, former address and former fiscal year, if changed
since last report)

Check whether the issuer (1) filed all reports required to be
filed by Section 13 or 15(d) of the Exchange Act during the past
12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes   X     No

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the registrant filed all documents and reports
required to be filed by Section 12, 13 or 15(d) of the Exchange
Act after the distribution of securities under a plan confirmed
by a court. Yes         No

APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's
classes of common equity, as of the latest practicable date:
         Class                   Outstanding at March 31, 2004
$.05 Par Value Common Stock             10,439,687 Shares

Transitional Small Business Disclosure Format (Check One):
Yes  ; No  X
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TSI, INC.

INDEX


MARCH 31, 2004






Page Number
PART I

  Condensed Financial Statements:

Balance Sheet -March 31, 2004	                    2

Statements of Income and Comprehensive Income -
  Three Months Ended March 31, 2004 and 2003	    3

Statements of Cash Flows -
  Three Months Ended March 31, 2004 and 2003	    4

Notes to Financial Statements                     5-6

Management's Discussion and Analysis of the
      Statements of Income	                    7

Controls and Procedures                             8

PART II

  Other Information	                         9-10

  Signatures	                                   11

  Certifications				14-18


1
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TSI, INC.
CONSOLIDATED BALANCE SHEET
AS OF MARCH 31, 2004


ASSETS

Current Assets
   Cash	                 $	20,091,883
   Marketable Securities,
    at Fair Value		 4,626,306
   Receivables, Net		    77,334

   Prepaid Expenses		    41,599

      Total Current Assets      24,837,122

Other Assets

   Noncurrent Investments,
    at Fair Value 		   706,060

Property, Plant and Equipment,
  Net		                   769,597

Total Assets	          $	26,312,779


LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities
   Accounts Payable and
    Accrued Liabilities	  $	   181,575
   Income Taxes Payable		    37,941
   Current Deferred Income Taxes   115,319
   Due to Parent Company	   159,394

   Related Party Payable           135,129

       Total Current Liabilities   629,358

Provision for Estimated Title
  and Escrow Losses		   778,748

Minority Interests 		   371,557

Long Term Deferred Income Taxes	   128,670

Stockholders' Equity
   Common Stock, $.05 Par Value,
     30,000,000 shares authorized,
     10,439,687 shares issued &
      outstanding		   521,984
   Additional Paid-In Capital	19,087,260
   Retained Earnings		 4,339,110
   Accumulated Other
    Comprehensive Income	   456,092
       Total Stockholders'
        Equity	                24,404,446

Total Liabilities and
  Stockholders' Equity	 $	26,312,779

See Notes to Consolidated Financial Statements.

2
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          TSI, INC.
    CONSOLIDATED STATEMENTS
OF INCOME AND COMPREHENSIVE INCOME




		         For The Three Months
		               Ended
		              March 31,
		         2004		2003

Operating
 Revenues	        $ 564,407 	$ 657,026

Operating
  Expenses

  Salaries and
     Payroll Costs2       81,011 	  231,006

  Depreciation		  20,665 	   17,790

  Other Expenses	 176,199 	  287,367

  Total Expenses	 477,875 	  536,163

      Operating Income	  86,532 	  120,863


Minority Portion
   Of Income		 (4,160)	  (1,839)

		          82,372 	  119,024

Income Tax Expense	(18,539)	  (13,130)

      Net Income	 63,833 	  105,894

Other Comprehensive Income
  Increase (Decrease) in
  Unrealized Holding Gains,
  Net of Income Taxes	 13,474 	   17,330

      Comprehensive
        Income	   $	 77,307 	$ 123,224

Basic Earnings Per
  Share	           $	 0.006	        $    0.01

Weighted Average
   Shares	     10,453,859 	10,469,291


      See Notes to Consolidated Financial Statements.


3
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TSI, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS




		                       For The Three Months
		                              Ended
		                             March 31,
		                        2004		2003
CASH FLOWS FROM OPERATING ACTIVITIES

   Net Cash From Operations	$     73,074 	$    157,562


Net Cash Provided By
   Operating Activities		      73,074 	     157,562


CASH FLOWS FROM INVESTING ACTIVITIES

  Cash Purchases of Furniture and
    Building Improvements	    (137,488)	     (14,206)

  Cash Used For Purchases of
    Marketable Securities
    Available For Sale		  (3,442,291)	  (1,012,610)

  Cash Received on Dispositions
    of Marketable Securities
    Available For Sale		      13,392          117,782

Net Cash Provided (Used) By
   Investing Activities		 (3,566,387)	    (909,034)

CASH FLOWS FROM FINANCING ACTIVITIES

  Cash Purchases of Common Stock    (45,936)	      (1,700)
  Cash Provided (Due From)
    Parent Company		      --	      105,857

Net Cash Provided (Used) By
   Financing Activities		    (45,936)          104,157

NET DECREASE IN CASH		 (3,539,249)	    (647,315)

CASH - BEGINNING OF PERIOD	  23,631,132       23,337,149

CASH - END OF PERIOD	    $	  20,091,883 	$  22,689,834

See Notes to Consolidated Financial Statements.

4

TSI, INC.

NOTES TO FINANCIAL STATEMENTS

MARCH 31, 2004

Note. 1  Basis of Presentation
In the opinion of management, all adjustments necessary
(consisting of only normal recurring accruals) have been
made to the unaudited financial statements to present fairly
the Company's financial position as of March 31, 2004 and the
results of the Company's operations and cash flows for the
three months ended March 31, 2004 and 2003.  The results of
operations for the three months ended March 31, 2004 and 2003
are not indicative of the results to be expected for the full
year.

The consolidated financial statements include the accounts of
the company, its wholly owned subsidiaries and its majority
owned subsidiaries. All significant intercompany transactions
and balances have been eliminated in consolidation.

M Corp, Great Falls, Montana, owns approximately 92% of the
Company's issued and outstanding common stock.

Note 2.  Significant Accounting Policies
For purposes of the statements of cash flows, cash equivalents
include time deposits, certificates of deposit and money market
accounts, all with original maturities of three months or less.

The Company's investment security portfolios, current and
noncurrent, are carried at fair value in the Company's balance
sheet at March 31, 2004. The unrealized holding gain at
March 31, 2004, net of the estimated income tax effects and
minority interests in the unrealized holding gains, is included
in Accumulated Other Comprehensive Income at March 31, 2004.

Basic earnings per share (EPS) is calculated by dividing net
income by the weighted number of common shares outstanding for
the period.

Note 3.  Contingencies
The Board of Directors has approved the Company's participation
in an attempt to purchase a savings and loan institution.  The
Company will participate in the purchase with its parent, M Corp.
Should the purchase take place, the liquidity of the Company
will be significantly affected.


5
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TSI, INC.

NOTES TO FINANCIAL STATEMENTS

MARCH 31, 2004

Note 4.  Segment Information

Sales to outside concerns, interest revenues and segment
operating profit for the Company's reportable segments were
as follows for the period ended March 31, 2004:




                           Sales To             Segment
                           Outside    Interest  Operating
                           Concerns   Revenues  Profit


Financial
  Holding Company            $ 52,355    $24,191  $(25,986)
Title Insurance
  Operations                  369,383     10,477     76,297
Rental Properties             108,001        -       36,221

Consolidated                 $529,739    $34,668  $  86,532


6
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TSI, INC.

MANAGEMENT'S DISCUSSION AND ANALYSIS
   OF THE STATEMENTS OF INCOME

MARCH 31, 2004


A summary of the period to period changes in items included
in the statements of income is shown below.





                                          COMPARISON OF
                                       Three Months Ended
                                            March 31,
                                       2004    and   2003

                                            Increases
                                           (Decreases)

                 Revenues                  $  (92,619)  ( 14.1%)

                 Operating Expenses        $  (58,287)  ( 10.9%)

                 Net Income                $ (42,061)   ( 39.7%)

	Revenues decreased $92,619 in the first quarter of 2004
as compared with the first quarter of 2003 due primarily to an
decrease in title revenue of $196,090 (35.4%).  Other factors
include:  a slight increase in rent of $14,271 (15.2%), a decrease
in interest and dividends of $4,770 (9.5%), an increase in other
revenue of $16,738 (92.8%), and a $10,000 gain on sale of
securities during the first quarter of 2004 compared to $61,752
loss on sale of securities during first quarter 2003.

Operating expenses decreased $58,287 (10.9%) in the first quarter
of 2004 as compared with the first quarter of 2003 due primarily to
a decrease of $100,168 (39.4%) in other expenses.  Salaries and
payroll costs increased $50,005 (21.6%), intercompany charges
decreased by $11,000 (33.3%),and depreciation increased by
$2,875 (16.2%) in the first quarter of 2004 compared with the first
quarter of 2003.

7
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TSI, INC.

CONTROLS AND PROCEDURES

MARCH 31, 2004

Evaluation of disclosure controls and procedures.  Based on an
evaluation carried out under the supervision and with the
participation of our management, including our Chief Executive
Officer and Chief Financial Officer during the 90-day period
prior to the filing of this report, our Chief Executive Officer
and Chief Financial Officer believe that our disclosure controls
and procedures, as defined in Securities Exchange Act Rules
13a-14 and 15d-14, are, to the best of their knowledge,
effective.

Changes in internal controls, subsequent to the date of this
evaluation.  Our Chief Executive Officer and Chief Financial
Officer are not aware of any significant changes in our internal
controls over financial reporting, including any corrective
actions with regard to significant deficiencies and material
weakness, or in other factors that could significantly affect
these controls to ensure that information required to be
disclosed by us, in reports that we file or submit under the
Securities Act, is recorded, processed, summarized, and
reported within the time period specified in Securities and
Exchange Commission rules or regulations.

8

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TSI, INC.

PART II

OTHER INFORMATION

MARCH 31, 2004




ITEM 1	LEGAL PROCEEDINGS

None

ITEM 2	CHANGES IN SECURITIES AND USE OF PROCEEDS

None

ITEM 3	DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4	SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None

ITEM 5	OTHER INFORMATION

None

9
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TSI, INC.

PART II

OTHER INFORMATION - CONTINUED

MARCH 31, 2004


ITEM 6	EXHIBITS AND REPORTS ON FORM 8-K


   (a)  Exhibits:

       Exhibit
       Number 	Description                              Page #

	3.1	Articles of Incorporation                 12
	3.2	By-Laws                                   12
	10	Material Contracts                        12
	16	Letter on change in certifying accountant 13
	31.1	Certification required under Section 302  14-15
	31.2	Certification required under Section 302  16-17
	32.1    Certification required under Section 906  18
	32.2    Certification required under Section 906  18


   (b)  Reports on Form 8-K

On October 20, 2003, Dwyer & Company, CPA, PC, our independent
accountant, resigned, when the review for the period ending September
30, 2003 was completed.  February 23, 2004, we engaged Anderson
ZurMuehlen & Co., P.C. as our principal accountant to audit our
financial statements.  The decision to change was approved by the
Board of Directors.  Dwyer & Company, CPA, PC's  report on the
financial statements for either of the past two years did not contain
an adverse opinion and was not modified as to uncertainty, audit scope
or accounting principles.  A current report on Form 8-K was filed
with the SEC on February 24, 2004 regarding the change in auditors.
On April 30, 2004, Form 8-K/A was filed including additional
disclosures required by the Securities Exchange Commission.


10

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SIGNATURES





In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.



TSI, INC.
Registrant




Date: June 30, 2004                    By:  s/John Ross
					John Ross,
					President

In accordance with the Exchange Act, this report has been signed
below by the following persons on behalf of the Registrant and in
the capacities indicated on June 30, 2004.


Director				s/Tyler Arneson
					  Tyler Arneson

Director				s/A.M. McCann
					  A. M. McCann

Chief Executive Officer		s/Paul J. McCann.
					  Paul J. McCann

Chief Financial Officer		s/D. Mellinger
			           D. Mellinger


11
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TSI, INC.

EXHIBIT 3.1

ARTICLES OF INCORPORATION

There have been no amendments to the Articles of
Incorporation for TSI, Inc.during the first fiscal
quarter of 2004.





EXHIBIT 3.2

BY-LAWS

During the first quarter  ending March 31, 2004,
there were no changes toTSI, Inc.'s By-laws.






EXHIBIT 10

MATERIAL CONTRACTS

No material contracts were executed or became
effective during the first quarter of 2004.


12
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TSI, INC.

EXHIBIT 16

LETTER ON CHANGE IN CERTIFYING ACCOUNTANT


[DWYER & COMPANY, CPA, PC LETTERHEAD]

DWYER & COMPANY, CPA, PC [LOGO]

18 6th Street North, Suite 200, Great Falls, MT   59401
Phone (406) 453-2463  Fax (406) 727-3225





We have read the Form 8-K, item 4, for TSI, Inc.,
(SEC File No. 0-2054) dated February 23, 2004, and Form
8-K/A dated April 27, 2004, and we agree with the
statements made therein concerning our resignation.


Sincerely,



/s/Dwyer & Company, CPA, PC
    Dwyer & Company, CPA, PC


13
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TSI, INC.

EXHIBIT 31.1

CERTIFICATION


I, Paul J. McCann, certify that:

1.  I have reviewed this quarterly report on Form 10-QSB of
    TSI, Inc.

2.  Based on my knowledge, this report does not contain any
    untrue statement of a material fact or omit to state a
    material fact necessary to make the statements made, in
    light of the circumstances under which such statements
    were made, not misleading with respect to the period
    covered by this report;

3.  Based on my knowledge, the financial statements, and
    other financial information included in the annual report,
    fairly present in all material respects the financial
    condition, results of operations and cash flows of TSI,
    Inc., as of, and for, the periods presented in this report.

4.  TSI, Inc.'s other certifying officers and I are responsible
    for establishing and maintaining disclosure controls and
    procedures (as defined in Exchange Act Rules 13a-15(e) and
    15d-15(e) and internal control over financial reporting (as
    defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for
    TSI, Inc. and have:

    a. Designed such disclosure controls and procedures, or caused
    such disclosure controls and procedures to be designed under
    our supervision, to ensure that material information relating
    to TSI, Inc., including its consolidated subsidiaries, is made
    known to us by others within those entities, particularly
    during the period in which this report is being prepared;

    b. Evaluated the effectiveness of TSI, Inc.'s disclosure
    controls and procedures and presented in this report our
    conclusions about the effectiveness of the disclosure controls
    and procedures, as of the end of the period covered by this
    report based on such evaluation; and:

    c. Disclosed in this report any change in TSI, Inc.'s internal
    control over financial reporting that occurred during TSI,
    Inc.'s first fiscal quarter that has materially affected, or
    is reasonably likely to materially affect TSI, Inc.'s internal
    control over financial reporting;


14
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TSI, INC.

EXHIBIT 31.1 - CONTINUED

CERTIFICATION

 5.  TSI Inc.'s other certifying officers and I have disclosed,
based on our most recent evaluation of internal control over
financial reporting, to TSI, Inc.'s auditors and the audit
committee of TSI, Inc.'s Board of Directors (or persons
performing the equivalent functions):

a.  All significant deficiencies and material weaknesses in the
    design or operation of internal controls over financial
    reporting which are reasonably likely to adversely affect
    TSI,  Inc.'s ability to record, process, summarize and report
    financial information; and

b. any fraud, whether or not material, that involves management
   or other employees who have a significant role in TSI, Inc.'s
   internal control over financial reporting.



    Date: June 30, 2004             s/Paul J. McCann
                                   Paul J. McCann,
                                   Chief Executive Officer

15
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TSI, INC.

EXHIBIT 31.2

CERTIFICATION

I, D. Mellinger, certify that:

1. I have reviewed this quarterly report on Form 10-QSB of
     TSI, Inc.

2. Based on my knowledge, this report does not contain any
   untrue statement of a material fact or omit to state a
   material fact necessary to make the statements made, in
   light of the circumstances under which such statements
   were made, not misleading with respect to the period
   covered by this report;

3. Based on my knowledge, the financial statements, and other
   financial information included in the annual report, fairly
   present in all material respects the financial condition,
   results of operations and cash flows of TSI, Inc., as of,
   and for, the periods presented in this report.

4. TSI, Inc.'s other certifying officers and I are responsible
   for establishing and maintaining disclosure controls and
   procedures (as defined in Exchange Act Rules 13a-15(e) and
   15d-15(e) and internal control over financial reporting (as
   defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for
   TSI, Inc. and have:

   a. Designed such disclosure controls and procedures, or
caused such disclosure controls and procedures to be designed
under our supervision, to ensure that material information
relating to TSI, Inc., including its consolidated subsidiaries,
is made known to us by others within those entities,
particularly during the period in which this report is being
prepared;

b.  Evaluated the effectiveness of TSI, Inc.'s disclosure
controls and procedures and presented in this report our
conclusions about the effectiveness of the disclosure controls
and procedures, as of the end of the period covered by this
report based on such evaluation; and:

c. Disclosed in this report any change in TSI, Inc.'s internal
control over financial reporting that occurred during TSI,
Inc.'s first fiscal quarter that has materially affected, or
is reasonably likely to materially affect TSI, Inc.'s internal
control over financial reporting;



16
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TSI, INC.

EXHIBIT 31.2 - CONTINUED

CERTIFICATION

5.  TSI Inc.'s other certifying officers and I have disclosed,
based on our most recent evaluation of internal control
over financial reporting, to TSI, Inc.'s auditors and the
audit committee of TSI, Inc.'s Board of Directors (or persons
performing the equivalent functions):

  a. All significant deficiencies and material weaknesses in
    the design or operation of internal controls over financial
    reporting which are reasonably likely to adversely affect
    TSI,  Inc.'s ability to record, process, summarize and
    report financial information; and

  b. any fraud, whether or not material, that involves management
     or other employees who have a significant role in TSI,
     Inc.'s internal control over financial reporting.



    Date: June 30, 2004             s/D. Mellinger
                                      D. Mellinger,
                                      Chief Financial Officer

17
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TSI, INC.

EXHIBIT 32.1

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350
AS ADOPTED UPRSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of  TSI, Inc. on Form
10-QSB for the period ending March 31, 2004 as filed with the
Securities and Exchange Commission on the date hereof
(the "Report"),  I, Paul J. McCann, Chief Executive Officer of
TSI, Inc., certify, pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002,
to the best of my knowledge and belief, that;

The report fully compiles with the requirements of section 13(a)
or 15(d) of the Securities Exchange Act of 1934; and

The information contained in the Report fairly presents, in
all material respects, the financial condition and result of
perations of TSI, Inc.

Date:  June 30, 2004             s/Paul J. McCann
                                   Paul J. McCann,
                                   Chief Executive Officer



EXHIBIT 32.2

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350
AS ADOPTED UPRSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of  TSI, Inc. on
Form 10-QSB for the period ending March 31, 2004 as filed with
the Securities and Exchange Commission on the date hereof
(the "Report"),  I, D. Mellinger, Chief Financial Officer of
TSI, Inc., certify, pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002, to the best of my knowledge and belief, that;

The report fully compiles with the requirements of section
13(a) or 15(d) of the Securities Exchange Act of 1934; and

The information contained in the Report fairly presents, in
all material respects, the financial condition and result of
operations of TSI, Inc.

Date:  June 30, 2004                   s/D. Mellinger
   			               D. Mellinger,
                                       Chief Financial Officer


18
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